Subex Limited (SUBEXLTD) AI Stock Analysis

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Subex Limited

(NSE:SUBEXLTD)

Select Model

Rating:60Neutral

Price Target:INR 18.00▲(5.57% Upside)

Action:reiterated

Date:09/24/26

The score is driven primarily by improving financial performance (FY2026 profitability and cash-flow rebound with low leverage), supported by strong technical uptrend signals. These positives are offset by an expensive valuation (high P/E) and remaining questions about the consistency and quality of the turnaround given prior-year volatility and sharply lower FY2026 gross margin.

Positive Factors

Return to ProfitabilityThe return to positive operating profit and approximately 10% net margin represents a meaningful recovery from prior losses. If maintained, improved profitability can strengthen internal funding capacity, support product investment, and provide a more durable earnings base over the next several quarters.

Negative Factors

Gross Margin CompressionThe sharp decline in gross margin materially weakens the quality and sustainability of the FY2026 recovery. Even with positive revenue and net income, much lower gross profitability leaves less contribution available for operating expenses, reinvestment, and durable earnings expansion.

Subex Limited (SUBEXLTD) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 9.47B
Dividend Yield: ―
Average Volume (3M): 844.24K
Price to Earnings (P/E): 22.7
Beta (1Y): 1.63
Revenue Growth: 2.91%
EPS Growth: ―
Country: India
Employees: 632
Sector: General
Sector Strength: 55
Industry: Software - Application

Subex Limited Business Overview & Revenue Model

Company Description

Established in 1992 and headquartered in Bengaluru, India, Subex Limited delivers comprehensive operational and business support systems (OSS/BSS) to telecommunication service providers worldwide. The company's diverse offerings encompass advanced so...

How the Company Makes Money

Subex primarily makes money by licensing and delivering its software products to communications service providers and charging ongoing fees to operate and support those deployments. Key revenue streams typically include (1) software license revenue (...

Subex Limited Financial Statement Overview

Summary

FY2026 shows a clear turnaround with a return to profitability (~10% net margin) and materially stronger operating/free cash flow, supported by a low-debt balance sheet. Offsetting this, results have been choppy over multiple years (deep losses in FY2024–FY2025, inconsistent revenue growth), and FY2026 gross margin compressed sharply (~6% vs ~20–34% previously), raising durability concerns.

Income Statement

46Neutral

Balance Sheet

72Positive

Cash Flow

64Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.92B	2.79B	2.86B	3.10B	2.79B	3.31B
Gross Profit	57.40M	167.00M	567.40M	768.80M	780.00M	1.04B
EBITDA	407.50M	257.40M	-34.80M	-1.57B	-220.70M	461.30M
Net Income	299.40M	285.30M	-314.40M	-1.92B	-512.10M	209.90M
Balance Sheet
Total Assets	0	5.52B	4.87B	5.30B	7.04B	7.20B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.26B	938.40M	1.04B	1.20B	1.18B
Total Debt	0	282.70M	193.80M	281.60M	333.90M	146.80M
Total Liabilities	-3.43B	2.09B	1.82B	1.96B	1.82B	1.56B
Stockholders Equity	3.43B	3.43B	3.04B	3.34B	5.22B	5.64B
Cash Flow
Free Cash Flow	295.50M	714.60M	73.40M	-110.10M	43.20M	-141.60M
Operating Cash Flow	328.50M	754.30M	97.50M	-82.80M	92.50M	-87.60M
Investing Cash Flow	234.60M	-366.90M	-149.70M	331.50M	-378.10M	-353.40M
Financing Cash Flow	-40.40M	-87.30M	-120.50M	-93.40M	-65.10M	-128.80M

Subex Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price17.05

Price Trends

50DMA18.57Negative

100DMA15.99Positive

200DMA12.80Positive

Market Momentum

MACD-0.49Positive

RSI45.55Neutral

STOCH46.42Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUBEXLTD, the sentiment is Positive. The current price of 17.05 is below the 20-day moving average (MA) of 17.44, below the 50-day MA of 18.57, and above the 200-day MA of 12.80, indicating a neutral trend. The MACD of -0.49 indicates Positive momentum. The RSI at 45.55 is Neutral, neither overbought nor oversold. The STOCH value of 46.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SUBEXLTD.

Subex Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SUBEXLTD against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:TANLA	84Outperform	INR 85.99B	16.54	―	1.73%	17.68%	17.46%
IN:INFOBEAN	81Outperform	INR 16.36B	11.19	―	0.59%	35.59%	40.03%
IN:NEWGEN	74Outperform	INR 62.39B	19.49	―	1.36%	6.49%	-3.73%
IN:TATAELXSI	73Outperform	INR 242.37B	35.93	―	1.94%	10.01%	-0.08%
IN:SUBEXLTD	60Neutral	INR 9.42B	22.72	―	―	2.91%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:KELLTONTEC	51Neutral	INR 6.25B	7.29	―	―	9.34%	2.71%

* General Sector Average

Performance Comparison

IN:SUBEXLTD and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SUBEXLTD	Subex Limited	17.05	4.15	32.17%
IN:INFOBEAN	InfoBeans Technologies Ltd.	169.11	17.01	11.19%
IN:KELLTONTEC	Kellton Tech Solutions Ltd.	12.18	-8.84	-42.06%
IN:NEWGEN	Newgen Software Technologies Limited	440.35	-489.24	-52.63%
IN:TANLA	Tanla Platforms Ltd	694.55	95.33	15.91%
IN:TATAELXSI	Tata Elxsi Limited	3862.00	-1308.21	-25.30%

Subex Limited Corporate Events

Subex Wins $0.72 Million AI Deal With Tier-1 African Telecom Operator

Oct 30, 2026

Subex Limited has secured a strategic AI Agents contract worth USD 0.72 million with a Tier-1 African telecom operator, marking a notable international win for its AI-led portfolio. The one-year engagement will deploy Subex’s AI Agents solutions to b...

Subex Confirms SEBI Compliance on Share Dematerialization for Q2 2026

Oct 5, 2026

Subex Limited has reported regulatory compliance under SEBI’s Depositories and Participants Regulations for the quarter ended September 30, 2026. The company, through its registrar and transfer agent KFin Technologies, has confirmed that all requisit...

Subex wins US$5 million Asia-Pacific telecom partner ecosystem deal

Sep 23, 2026

Subex Limited has secured a new-logo contract with a major mobile network operator in the Asia Pacific region to modernize and future‑proof the operator’s Partner Ecosystem Management operations. The engagement centers on deploying Subex’s Partner Ec...

Subex Shareholders Clear New ESOP Scheme and Trust Funding Plan

Sep 12, 2026

Subex Limited has secured shareholder approval via a postal ballot for a comprehensive new employee stock option framework, including the launch of the Subex Employees Stock Option Scheme 2026 and the extension of stock option grants to employees of...

Subex Wins EUR 0.6 Million Partner Ecosystem Deal with European Fibre Operator

Aug 21, 2026

Subex Limited has secured a new contract with a major European open-access fibre operator to deploy its Partner Ecosystem Management solutions. The three-year international deal, valued at EUR 0.6 million, is aimed at supporting the operator’s wholes...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 24, 2026

Subex Limited AI Stock Analysis